Many pockets in Ireland are in for a boost as the government prepares to scrap the minimum wage benchmark of €10.50.
Changes were announced by Tanaiste Leo Varadkar on Tuesday afternoon as the first details of a pay boost were revealed.
The plans underway will see the living wage set at 60% of the median wage in any given year - with the minimum wage rate continuing to increase each year until it reaches the living wage.
READ MORE: Key changes for minimum wage workers in Ireland in 2022
The living wage in Ireland currently stands at €12.17, which is nearly €2 above the existing minimum wage rate of €10.50.
The welcome increase will mean that €12.17 an hour will be the lowest legal wage in Ireland with hopes of a start date as soon as January 2023.
Varadkar confirmed that public consultation will be getting underway and that all final decisions are due to be made by September 2022.
This will allow time for businesses to get up to speed and change their hourly rates of pay for staff members before January 2023.
This comes just six months after the minimum wage in Ireland increased to €10.50 from €10.20 - marking a 3% rise in pay.
With a continued hike in prices for everything from filling your car to doing the grocery shop and heating your home in the winter, thousands of families will welcome the news.
The current rates are as follows:
- Aged 20 and over, €10.50
- Under 18, €7.35
- Aged 18, €8.40
- Aged 19, €9.45
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